Under Section 138 of the Negotiable Instruments Act, send a written notice to the drawer within 30 days of receiving the bank's return memo, demanding the cheque amount. The drawer has 15 days from receipt to pay; if not, you can file a complaint within one month after that. On FundRaksha Trust a lawyer drafts and the legal team reviews the notice; digital costs 799 RP and registered post 1,099 RP.
The Section 138 timeline
| Step | Deadline |
|---|---|
| Cheque presented | Within its validity |
| Return memo received from your bank | Day 0 |
| Legal notice sent to the drawer | Within 30 days of the return memo |
| Drawer to pay | 15 days from receiving the notice |
| Complaint before the magistrate | Within one month after the 15 days end |
The notice is the step most often got wrong: sent late, to the wrong address, for the wrong amount, or without proof that it was received.
What the notice must say
- The cheque number, date, amount and bank, and that it was given towards a debt or liability (your invoice).
- The date and reason of return, as on the memo ("funds insufficient", "exceeds arrangement" and so on).
- A demand for the cheque amount within 15 days of receipt.
- The drawer's correct name and address. Use the GST registration for this: the free GST check gives the legal name.
The cheque bounce legal notice format shows the structure, and cheque bounce notice explains each element.
Sending it through Trust
- Enter the buyer, the amount and the cheque details; attach the return memo if you have it.
- A lawyer drafts the notice and the legal team reviews it.
- Digital: sent by email and WhatsApp, delivered in minutes and tracked in the app (799 RP).
- Physical: printed and sent by registered post with an India Post tracking number; proof of delivery is saved (1,099 RP).
Because proof of service may be needed at the complaint stage, sending the physical notice as well as the digital one is a sensible default.
Worked example and next steps
A Kolkata jute-bag supplier receives two returned cheques of ₹95,000 and ₹1,20,000 from a Burrabazar trader, both marked "funds insufficient". It sends one notice covering both cheques through Trust, digital and by registered post, on the fifth day after the memo. The trader pays the first cheque within the 15 days and asks for time on the second. If he does not pay, the supplier can file a complaint within the following month. Recovery support in the city is at FundRaksha Kolkata.
Before accepting post-dated cheques from a new buyer again, check them first: see how to verify a buyer before giving credit, and report the defaulter if the cheque remains unpaid.
Common errors in cheque bounce notices
- Demanding interest or other dues in the same breath without separating the cheque amount, which can confuse the demand.
- Sending to an old address when the buyer has moved; check the current GST registration first.
- Counting 30 days from the cheque date instead of from the return memo.
- Filing the complaint too early, before the 15 days for payment have run out.
A lawyer-drafted notice avoids these, which is the point of using one.
Sources
Last reviewed: 2026-10-21. Information for Indian businesses; not legal advice.